The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
This company needs to start paying dividends once short term debt has been repaid next year. Until then I see no prospect of a significant increase in price above current levels. It is not much more than a utility stock without fracking.
Gdog
The word "afoot" is derived from the Old English word "on fote," which means on foot. Adequately describes the speed of any progress being made by Tremor methinks.
Grossly undervalued this company. Perhaps when the Japanese acquisition is finally completed it will rerate.
Chicken and egg situation here regarding SP, the lower the share price the greater the risk of substantial dilution if the company needs to raise capital. I believe that cash burn and cash available equation is restraining investors particularly as trials are going slower than many anticipated and current high interest environment pushing up the cost of capital.
I think the Scancell board might learn more from reading the FARN phase I/II trial update to learn how to communicate by RNS to shareholders. (Not ramping here, just comparing communication style with presentation followed by question and answer session).
I think that the current share price is reflecting the company's cash flow situation. Under the current UK investing 'sentiment' any company with negative CF and having less than two years 'cash' is on a knife edge. It is easy to get into a SP death spiral forcing massively discounted Rights Issue, asset sales (IP) etc. Scancell is no exception here and LD's interview did nothing to dispel these fears. This is compounded by a realisation by many shareholders that whilst trial results are very promising, timeframes are extending outwards. This obviously puts more pressure on cash flow. This is my interpretation of the situation anyway.
Not sure what this will contribute to bottom line.
I am sure they would be cash flow positive by now were they not investing in the creator platform. This is a game changer for this company if they can pull it off. Normally software development projects are frouht with risk of overun. Hower in this case the basic tech is well proven and up and running. We would expect that the bulk of the work outstanding is in the user interface development and as Ian said in the recent interview pises little risk. Late 2023 introduction of this platform would seem to be targeted by the company. Not long to wait and finances are there for at least the next two years.
Thanks jonhas, hadn't appreciated that we will have to wait until 2024 to see any bottom line benefit from Amobee purchase. Though I would have expected some Amobee costs to be written down in 'exceptionals' and thereby excluded from adjusted EBITDA.
Re above discussion regarding company's forecasts for 2023. I have difficulty reconciling figures as follows: revenue forecast $400mil (2022 was $335mil) with adj EBITDA at $140 to $145 (2022 was $144.9). Unless cost of sales and or admin are forecast to increase by a substantial amount ie approx $65mil, the forecast revenue must be overstated or EBITDA figure is understated. This inconsistency is concerning me. Anyone able to explain this apparent discrepancy.
The first installment of the settlement should have been received on 5th March. Yet no RNS has been issued to this effect. Surely NANOCO should have informed shareholders to this effect along with net amount retained
by NANOCO after costs.
The 9th January RNS IMO was a belated attempt by BT to cover his back when he realised he would be open to criticism for over ramping the ageement he was to make with Samsung . Nothing more nothing less. However to expect shareholders to reverse their posions as has been suggested by a certain poster on here is unrealistic as all the RNS did was to confuse. We have had no communicatio from BT since, which speaks volumes but he can find time to make presentations elsewhere.
'The Board is very confident in the strength of the Company's case and in an outcome that is transformational for Nanoco's prospects and shareholder value.' Statement from the Placing and Subscription announcement of 6 Jun 2022. This says it all. Yet still no explanation from the BOD on how shareholders value is to be transformed as a result of the settlement.
Troublesome
Thanks for the info. Hopefully there won't be any hidden costs we don't know about and the $15m figure should be confirmed in the next Interims in April. However with current inflation rate, by the time we get the balance, it will be worth 10% less. The more I look at this deal, the worse it gets.
Bonzo
It is not a question of belief in the company as if it were a religious enterprise. We all do our assessment of a company's prospect based on publically available information. Most of that information is supplied in one form or another by the Company. If that information is subject to doubt it leaves investors no means of assessing the company's prospects. Anyone 'believing in the Company' is taking a lot on trust. If NANCO's patents have little or no value, this company is dead in the water IMO as it is not going to compete with the bigger players otherwise. It is not as simply as selling up and moving on, the uncertainty makes even this a difficult call.